The 30-year bond slipped 11/32 to 99-25/32, and its yield rose to 4.64%.The 2-year note shed 2/32 to 99-30/32 with a 1.04% yield. The 5-year note was down 7/32 to 99-27/32 with a yield of 2.54%.

What's moving the market: Early in the session, a safety bid for U.S. Treasurys gained traction after a report from the European Union suggested that Greece's 2009 deficit was bigger than the government reported. The credit rating agency Moody's downgraded Greece's debt to a lower investment grade, and initiated a further review.

But the rally for U.S. debt lost steam following an announcement about upcoming supply. The Treasury said it will auction $129 billion in securities next week.

What analysts are saying: "There are different forces at work here," said David Coard, head of fixed income trading at the William Capital Group.

He said that earlier in the day, the continued worry about Greek debt was dominant and prompted safe haven buying of Treasurys.

But those fears abated throughout the day as investors focused on the upcoming supply.

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